Indian metropolis Bengaluru switches to green mobility: KfW to finance climate-friendly suburban railway

• EUR 500 million for an environmentally friendly, energy-efficient, integrated public transportation system
• Financing the implementation of 149 kilometres of sub-urban railway
• Transport options for 1.4 million passengers per day
• Better air quality and climate protection by reducing the strain on the road system

KfW signed two agreements with the Indian Ministry of Finance on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) for a development loan of EUR 370 million and a promotional loan of EUR 130 million. The funds will be used for the implementation of a suburban railway system in Bengaluru, the third largest city in India, to supplement the existing metro and bus system. The plan is to build a 149-kilometre stretch of suburban railway line with 58 stations along with two depots for maintenance and parking of the trains. The suburban railway system will provide for rapid transfers to other public transport systems such as the metro, buses, rickshaws and trains at all the relevant long-distance stations and will transport around 1.4 million passengers per day. All stations are planned to be certified as “green buildings” with effective insulation, fine-dust filters, waste separation systems, sustainable building materials and photovoltaic panels on the station roofs. To provide easier access to the metro, footpaths and cycle paths will be extended approximately 500 metres around the metro stations.

"The rapid population and economic growth in Bengaluru has resulted in increasing traffic volumes, which are hampering economic development and have a negative impact on the environment, climate and health of the population. This trend and the simultaneous increase in pollutants are to be counteracted by the implementation of the new suburban rail system in Bengaluru. The suburban railway will significantly reduce the amount of greenhouse gas emissions per year. As a result, KfW is also contributing to improved mobility for the population and to reducing air pollution in Bengaluru,"

said Christiane Laibach, Member of the Executive Board of KfW Group.

The project is part of the German-Indian Partnership for Green Urban Mobility. The partnership for clean, integrated and environmentally friendly mobility in Indian cities is contributing to the transition towards sustainable mobility. More than two million people now benefit each day from local public transport (metros, e-buses, ferries) whose services have been developed with German support. Construction work on the suburban railway will start in 2024 and last for several years. The estimated cost of the project is around EUR 2 billion.

The suburban railway project in Bengaluru also supports the climate partnership agreed between India and Germany in May 2022, which envisages Germany providing India with support amounting to EUR 10 billion by 2030.

Further information about KfW Development Bank is available at:
www.kfw-entwicklungsbank.de.

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